Rental market landscape: new realities
In recent months, the number of apartments available for long-term rent in Spain has decreased significantly. This is due to changes in legislation that have increased regulatory oversight of landlords and raised legal risks for them. As a result, property owners have become more selective when choosing tenants and are more likely to request additional guarantees, including advance payment for reserving an apartment.
Legality of advance payments
Paying an advance to reserve an apartment is permitted under Spanish law. The amount is usually between €300 and €500, but can vary depending on the rental price. This sum is later deducted from the first housing payment. In addition to this advance, the tenant is required to pay a standard deposit, the current month’s rent, and may need to provide additional guarantees or a guarantor.
For the transaction to be legitimate, both parties must sign a written agreement specifying the amount, refund conditions, and any penalties for breaching the agreement. If the tenant backs out, they risk losing the paid sum. If the property owner withdraws, they may be required to return double the advance payment.
Restrictions for agencies and landlords
Some real estate agencies try to charge a fee for viewing an apartment or commission the tenant. Such actions are against the law. All costs related to contract processing and agency services are paid exclusively by the property owner. This rule is set out in Article 20 of the Law on Urban Leases (Ley de Arrendamientos Urbanos, LAU).
How to increase your chances of renting
Property owners use advance payments as a way to filter out unreliable applicants. To stand out from other contenders, it is recommended to prepare the necessary documents confirming your financial reliability in advance and provide proof of no outstanding rental debts. This approach increases the landlord’s trust and speeds up the deal.
Deposit agreement: key points and consequences
Spanish law allows for a deposit agreement (contrato de arras) when renting a home. Depending on the type of contract, the consequences of breaching the terms may vary. It’s important to carefully review all contract clauses to avoid financial losses if either party backs out of the deal.
